A new survey shows that more first-time car buyers in India now prefer buying new cars instead of used ones. The main reason? Many believe that used car prices are too high and not worth the risk.
New Cars More Popular Now
According to Park+ Research Labs, 77% of first-time buyers now choose new cars. This marks a big change from past trends, where used cars were often the first choice for budget-conscious customers. The shift shows that people are starting to see more value in new cars due to better financing deals, improved after-sales service, and lesser risks.
In contrast, a January survey by CARS24 had predicted that the used car market would grow fast and reach one crore sales by 2030. It said demand was rising in both large and small cities. However, the latest Park+ survey, which spoke to 9,000 people, found that 81% of buyers think used car prices are “artificially inflated.” This is mainly due to many small, unorganised sellers in the market.
Used Car Buyers Face Issues
About 65% of people who considered used cars gave up after bad experiences. These included delays in getting Registration Certificate (RC) transfers, legal problems, and poor feedback from others. Online reviews also played a part in pushing buyers away from used cars.
This has affected many used-car companies. For example, CarDekho shut down its used car retail business in 2023 and is now focusing on car loans and insurance through platforms like Rupyy and InsuranceDekho.
Other companies are also changing direction. Cars24 has entered the new car market by launching a digital platform with all car details. Spinny, another used car startup, started its finance company called Spinny Capital and also bought the media platform Autocar India.
Overall, the car market in India is changing. With better offers, cleaner processes, and fewer hassles, new cars are becoming the top choice for many first-time buyers.
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